The New York City Procurement Reform Project A Report by the Human Services

Council of New York

Part 1: The Initial Impact of HHS Accelerator

Prepared by: Tracie Robinson, Policy Analyst

Human Services Council of New York

April 30, 2015

130 East 59th Street New York, NY 10022

Phone: 212-836-1623 robinsont@humanservicescouncil.org

© 2015 Human Services Council of New York

May 15, 2015

Dear members and partners,

I am pleased to present the Human Services Council of New York’s report on the initial impact

of HHS Accelerator. As you know, HSC partnered with the New York City Deputy Mayor for

Health and Human Services five years ago to conceptualize a Web-based procurement system

that would streamline human services contracting and foster more open and efficient

competition. The HHS Accelerator team, the Office of the Deputy Mayor for Health and Human

Services, the Mayor’s Office of Operations, and the Mayor’s Office of Contract Services have

been true partners in streamlining the procurement process, and the success of HHS Accelerator

is a reflection of their thoughtful, user-driven approach.

Our study revealed a high level of provider satisfaction with HHS Accelerator. We administered

an online survey to providers of all sizes and interviewed users regarding their procurement

experience before and after the launch of the system. Participants identified greater efficiency,

reduced administrative burdens, and outstanding customer support as key benefits of HHS

Accelerator. They see the potential for even greater benefit once all City human services

agencies fully engage in its use and as additional components are added.

During our interviews and via the online survey, providers offered ideas to make the system even

more robust. HSC is working with the HHS Accelerator team to address these suggestions. In

addition, we will be at the table as new components, such as the newly released Financials

module, roll out and enhancements are made. I would like to recognize Tracie Robinson, Policy

Analyst, for her work researching, conducting interviews, and writing this report and Michelle

Jackson, Associate Director & General Counsel, for spearheading our collaboration with HHS

Accelerator since its inception.

Partnering with City agencies and bringing the voice of nonprofit human services providers to

City initiatives are important parts of our ongoing work, and are made possible with your

support. We look forward to spearheading additional advancements on behalf of the sector.

Sincerely,

Allison Sesso

Executive Director

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ContentsForeword.......................................................................................................................................................2

Acknowledgements....................................................................................................................................... 3

Executive Summary....................................................................................................................................... 4

Background ...................................................................................................................................................5

Overview of the Procurement and Contracting Process ..............................................................................6

Key Actors in the Procurement Process.................................................................................................... 7

VENDEX .....................................................................................................................................................8

Overview of HHS Accelerator........................................................................................................................9

The Document Vault ................................................................................................................................. 9

The Prequalification Application.............................................................................................................10

Procurements..........................................................................................................................................10

Financials.................................................................................................................................................11

Alerts .......................................................................................................................................................11

Accelerator Usage ...................................................................................................................................11

Methodology of this Report........................................................................................................................13

Participant Selection ...............................................................................................................................13

Survey and Interview Questions .............................................................................................................13

The Impact of HHS Accelerator...................................................................................................................14

Duplication Curtailed ..............................................................................................................................15

Inconsistency Reduced............................................................................................................................16

Notification of Opportunities Streamlined .............................................................................................16

Voluminous RFPs and Burdensome Documentation Requirements Mitigated......................................17

Requests for Original Documents Minimized .........................................................................................18

Building on Success: Possible System Improvements.................................................................................20

Enhance the Document Vault .................................................................................................................20

Increase File Size Limits...........................................................................................................................20

Enhance Learning Opportunities ............................................................................................................20

Streamline RFP Notifications ..................................................................................................................20

Enforce and Expand Use Requirements..................................................................................................21

Conclusion...................................................................................................................................................22

Appendix 1 ..................................................................................................................................................23

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Foreword

This report is the result of a study of the HHS Accelerator (“Accelerator”) user experience. It representsan inquiry into the initial impact of the system and is limited to the procurement process (i.e., it excludesthe Financials Module). The Human Services Council (“HSC”) will conduct a follow-up study next yearthat will examine the Financials Module and any modifications to the system.

The study and report were made possible by a generous grant from The New York Community Trust.The overall conclusion is that the system is a significant step forward in the process of improving humanservices procurement in New York City. The system is revolutionary and not only eliminates substantialbarriers to competing for human services contracts, but also facilitates more open and robustcompetition. Notwithstanding the advances made by Accelerator, study participants noted certain areasfor enhancement and expansion. HSC will work with the Accelerator team over the coming year tomake the system even more robust and efficient.

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Acknowledgements

HSC commends the City of New York for daring to reimagine the human services procurement andcontracting process. Working closely with HSC and our members, the City has taken the bold steps ofdesigning and implementing a new, research-based, streamlined system. We thank the Office of theDeputy Mayor for Health and Human Services, the Mayor’s Office of Contract Services, the Mayor’sOffice of Operations,1 and the Procurement Policy Board for their continued commitment to improvingthe relationship between the City and its human services providers for the benefit of New Yorkers inneed. In particular, we are grateful to former Deputy Mayor Linda Gibbs, Louisa Chafee, and the entireHHS Accelerator team for their vision for changing procurement and for their ongoing assistance.

Neither Accelerator nor this report would have been possible without the honest, thoughtful input ofour member organizations. For this study, representatives of more than forty nonprofit providers tookthe time to complete a comprehensive survey, and representatives of twelve nonprofit providers gavedetailed accounts of their experience in face-to-face and telephone interviews, never missing a beat inthe delivery of services to their constituents. Their feedback is vital to the continuous improvement ofAccelerator, and we acknowledge the time and resources that they have devoted to optimizing theprocurement and contracting process.

Finally, HSC acknowledges the generous support of The New York Community Trust (“The Trust”), whichprovided funding for this report. Since 1924, The Trust has been a stalwart supporter of New York City’snonprofit organizations, making grants in the areas of community development and the environment;health and people with special needs; education, arts, and human justice; and children, youth, andfamilies. We thank The Trust for enabling us to carry out the important work of fine-tuning Accelerator,which will in turn enable the City and its nonprofit partners to focus more resources on the delivery ofhigh-quality human services to those who need them.

1 HHS Accelerator is now part of the Mayor’s Office of Operations, but when the system was launched, it was partof the Office of the Deputy Mayor for Health and Human Services.

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Executive Summary

Human services organizations provide much-needed supports for New York City’s most vulnerableresidents, and they comprise a significant share of the City’s economy. In fiscal year 2014, the City spentmore than $17.7 billion on supplies, services, and construction through more than 43,000 transactions.2

Human services accounted for 17 percent of all procurement.3 Nonprofit organizations are the primaryproviders of human services in New York City. As of June 30, 2014, nonprofits cumulatively held 93% ofall active human services contracts, regardless of registration date, with a total value of $16 billion.4 Infiscal year 2014, they delivered nearly $3.14 billion in services through more than 5,300 contracts.5

A healthy relationship between City government and providers is essential to the delivery of high-qualityservices. Unfortunately, the process of doing business with the City has proven problematic for manyorganizations. The difficulties, detailed in this report, have created significant administrative andfinancial burdens for providers, straining their resources and impairing their ability to serve clients.These problems have also made it harder for the City to identify and contract with qualifiedorganizations, which, in turn, has made it harder to meet the growing needs of under-resourcedpopulations.

More than five years ago, the Human Services Council engaged nonprofit providers and City governmentin a dialogue about the procurement process, with the goal of identifying core challenges andformulating a comprehensive, technology-driven solution. As a result of this extended dialogue, theDeputy Mayor’s Office for Health and Human Services launched a new Web-based procurement system,HHS Accelerator, in March 2013.6 This report examines the impact of the new system on the providerexperience based on interview and survey responses from those who use the system. The reportincludes 1) an overview of the HHS Accelerator initiative, 2) a review of progress to date, 3) a summaryof provider experiences, and 4) next steps and key considerations. The objective is to inform decisionsregarding further improvements to and possible expansion of the system.

Although HHS Accelerator has been in place for little more than a year, providers have alreadyexperienced reductions in redundancy, staff time spent on procurement, and inconsistency. The systemshows great promise despite a few remaining issues. Our study indicates that with continuous,research-based improvement, HHS Accelerator can transform the relationship between the City andproviders, increase the quality of human services delivered, and serve as a model for other agencies atthe City and State levels.

2 Mayor’s Office of Contract Services. Agency Procurement Indicators: Fiscal Year 2014. Accessed on Oct. 17,2014, at http://www.nyc.gov/html/mocs/html/research/indicator_reports.shtml. This reflects an increase of $8.2billion since fiscal year 2004. Mayor’s Office of Contract Services. Agency Procurement Indicators: Fiscal Year2004. Accessed on Oct. 17, 2014, at http://www.nyc.gov/html/mocs/html/research/indicator_reports.shtml.3 Mayor’s Office of Contract Services. Agency Procurement Indicators: Fiscal Year 2014.4 Id.5 Id.6 The Document Vault was launched in March 2013, and the first solicitations were released through the system inOctober 2013. City agencies began using the Financials module for fiscal year 2015 in July 2014.

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Background

New York City relies on nonprofit organizations to deliver human services to residents with a widespectrum of needs. These essential services, which include job training and placement, early childhoodeducation and afterschool enrichment, violence intervention, legal assistance, homeless shelters,community health services, and senior services,7 make the City livable for some of the most vulnerablepopulations. More than 5,600 human services contracts valued at more than $3.1 billion wereregistered in fiscal year 2014, representing 17% of the total value of registered contracts.8

Unfortunately, the City’s need for human services has outgrown its process for identifying and engagingproviders.

As the demand for human services increased in the wake of the 2008 financial crisis, the problems withthe City’s cumbersome procurement process became untenable. Providers were expected to delivermore services to more people, but the administrative burdens of procurement and contracting neverrelented. Copious paperwork and outdated modes of communication taxed the resources of alreadyoverextended organizations. For more than half a decade, the Human Services Council (HSC) has been aleading advocate for a more streamlined procurement and contracting process in New York City. HSChas served as a partner to the City and to nonprofit service providers in the design and implementationof a more efficient system.

In 2009, Mayor Michael R. Bloomberg convened the Strengthening Nonprofits Task Force to improveCity procurement and contracting procedures and bolster the nonprofit sector in other areas.9 HSC wasthe City’s partner in the research that would inform the new system architecture, conducting focusgroups, interviews, and surveys of human services providers that frequently contract with the City. In2010, the Office of the Deputy Mayor for Health and Human Services (“DMHHS”) and the Mayor’s Officeof Contract Services published a concept paper synthesizing their work with HSC and proposing ablueprint for HHS Accelerator, a Web-based procurement system that would maximize existingresources and increase the efficiency of the procurement process.10 The City then began designing andtesting the new system.

In 2013, the Procurement Policy Board promulgated rules making Accelerator the default procurementmethod for client service contracts, setting forth the policy and criteria governing the prequalification ofvendors through HHS Accelerator, and establishing a process for soliciting proposals from prequalifiedvendors through the system.11 In March 2013, Accelerator went live. Today, twelve agencies androughly 1,600 prequalified providers use the system. HSC set out to evaluate the impact of Acceleratorand determine how it can be improved. This report is a synthesis of anecdotal evidence andquantitative data that will inform the City’s next steps.

7 New York City HHS Accelerator: Achieving High Performance Relationships with Providers of Human Services.Office of the Deputy Mayor for Health and Human Services. Mayor’s Office of Contract Services. April 2010.Accessed on Oct. 22, 2014, at http://www.nyc.gov/html/hhsaccelerator/html/about/about.shtml.8 Mayor’s Office of Contract Services. Agency Procurement Indicators: Fiscal Year 2014.9 Id.10 Concept paper: http://www.nyc.gov/html/hhsaccelerator/downloads/pdf/hhs_accelerator_concept_paper.pdf.11 Id. See also PPB 1-01, 2-04, 2-08, 2-09, 3-01, 3-10, 3-16, and 4-12.

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Overview of the Procurement and Contracting Process

The procurement and contracting system is the foundation of the relationship between the City andservice providers. The purpose of the procurement process is to identify, through fair and transparentcompetition, the most capable vendor to meet a particular need, with consideration given to cost-effectiveness. An efficient process is essential to the judicious use of taxpayer dollars and the timelydelivery of high-quality services. The graphic below summarizes the City’s procurement process.

Source: Mayor’s Office of Contract Services.12

In the planning stage, an agency identifies a need and the Agency Chief Contracting Officer (ACCO)chooses the method of procurement. In this report, we are focusing on the competitive sealed proposalmethod of procurement. Once the planning is complete, the pre-solicitation phase begins. In thisphase, the agency drafts a Request for Proposals (RFP) and evaluation criteria and obtains the necessaryapprovals. The third step is solicitation, in which the agency publishes the RFP and receives proposals.When the solicitation period expires (i.e., when the proposal submission deadline occurs), the agencybegins the evaluation phase. It evaluates proposals, selects a vendor, holds a public hearing, anddetermines vendor responsibility.13 The responsibility determination is made using the VENDEXdatabase, which is described below. Once the selected vendor is found to be responsible, the agencycan make an award. In the award phase, the service contract is negotiated and signed. Finally, theComptroller signs and registers the contract package. At this point, the contract is in force and service

12 Mayor’s Office of Contract Services. Agency Procurement Indicators: Fiscal Year 2012. Accessed on Nov. 6,2014, at http://www.nyc.gov/html/mocs/html/research/indicator_reports.shtml.13 “A responsible contractor has the technical capability and financial capacity to fully perform the requirements ofthe contract, as well as the business integrity to justify the award of public tax dollars.” Mayor’s Office of ContractServices. http://www.nyc.gov/html/mocs/html/procurement/procurement.shtml

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begins. The agency will monitor the vendor’s performance and submit evaluations through the VENDEXsystem.

Key Actors in the Procurement ProcessThe HHS contracting landscape is notoriously complex, involving ten agencies under the oversight of theDeputy Mayor for Health and Human Services (“DMHHS”), as well as several agencies outside ofDMHHS’ purview; multiple oversight bodies; and thousands of providers. The principal agencies thatcontract for human services are:

Administration for Children’s Services(“ACS”)

Mayor’s Office of Criminal Justice(“MOCJ”)

Department for the Aging (“DFTA”) Department of Correction (“DOC”) Department of Homeless Services (“DHS”) Department of Health and Mental Hygiene

(“DOHMH”)

Department of Probation (“DOP”) Department of Youth and Community

Development (“DYCD”) Human Resources Administration (“HRA”) Department of Housing Preservation and

Development (“HPD”) Department of Small Business Services

(“SBS”)

Many agencies purchase related services for the same populations in the same neighborhoods. Thisresults in a number of providers contracting with and reporting to multiple agencies, as illustratedbelow. It can also lead to duplication of paperwork.

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Furthermore, multiple legal, fiscal, and contracting oversight entities operate simultaneously to ensureintegrity, fidelity, and public accountability throughout the procurement and contracting process. Forexample, the Corporation Counsel (Law), Comptroller, Office of Management and Budget (OMB),Mayor’s Office of Contract Services (MOCS), Department of Investigation (DOI), and Division of LaborServices (DLS) within the Department of Small Business Services play an important role in thecontracting process.14

VENDEXThe Vendor Information Exchange System (“VENDEX”) is the primary means by which agencies makeresponsibility determinations.15 VENDEX is a public database housing information about providers’capacity, legal structure, and financial status. The principal sources of this information are the twoquestionnaires that each current contractor and prospective contractor must complete: the VendorQuestionnaire and the Principal Questionnaire. The Vendor Questionnaire elicits information about theintegrity, potential conflicts of interest, legal structure, disciplinary history, and financial soundness ofthe provider. It is not intended to draw out service-related information in great detail. The PrincipalQuestionnaire elicits similar information from the organization’s principal owners and the three officerswho exercise the most control over the organization.

14 Agency Procurement Indicators Report Fiscal Year 2012. City of New York Mayor’s Office of Contract Services.Web. 20 March 2014.15 While agencies may use other resources as well, they are required by law to use VENDEX for awards totalingmore than $100,000.15

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Overview of HHS Accelerator

Accelerator is a comprehensive, Web-based procurement and contract management system throughwhich City agencies and providers communicate, share documents, and collaborate. The system hasfour main components:

The Document Vault, which allows providers to store frequently requested documents forviewing by multiple agencies

The prequalification application, which enables providers to demonstrate their experience,capacity, and business integrity prior to competing for City funds

The Procurements module, which enables electronic issuance of RFPs, almost-paperlesssubmission and evaluation of proposals, and online management of contract awards

The Financials module, which allows submission of budgets and invoices for review, as well asprocessing and tracking of budget modifications and payments16

The Document VaultThe Document Vault enables providers to store three kinds of frequently requested documents: 1)corporate structure documents, 2) financial documents, and 3) policy documents.17 Many of thesedocuments, such as an organization’s board list, certificate of incorporation, and independent audit, arerequired in order to do business with the City.18 The purpose of the Document Vault is to reduceredundancy in the application process by providing a secure, central repository for organizationaldocuments that is accessible to multiple agencies. Thus, rather than submitting the same documents tomultiple agencies separately, organizations can store them in the Vault and select which participatingagencies and providers can access them. The Document Vault reduces the risk of lost documents andprovides the convenience of having “everything in one place.”

HHS Accelerator screenshot

16 Mayor’s Office of Contract Services. Agency Procurement Indicators: Fiscal Year 2014.17 http://www.nyc.gov/html/hhsaccelerator/downloads/pdf/About%20HHS%20Accelerator_February%202014.pdf18 Id.

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The Prequalification ApplicationProviders establish their “Eligibility to Compete” through a two-part prequalification process withinAccelerator. In the first part of this process, called the Business Application, organizations tell the Citywho they are. In the second part, called the Service Application, they tell the City what they do. Thepurpose of the Business Application is for organizations to prove their legal identity and fiscal soundnessto the City, which they must do through regulatory filings and organizational documents. The purposeof the Service Application is for them to demonstrate their experience and capacity in the service areasof their choosing.

The Service Application is important because it dictates the kinds of RFPs that will be made available toeach prequalified provider. For example, a provider that demonstrates only experience deliveringhomelessness prevention services will not be able to respond to solicitations for workforce developmentservices. This limitation is intended to optimize the problem-solution matching process by ensuring thatproviders receive the RFPs that are best aligned with their capabilities. At the same time, the ServiceApplication taxonomy encourages organizations to think more expansively about their services bynotifying them of opportunities that they have the infrastructure to undertake that may be beyond theirexisting repertoire. For example, an organization that provides meals to homebound seniors couldeasily expand to provide home visits for HIV/AIDS individuals as well. In this way the system promotesstrategic growth among providers. The complete catalog of services from which providers may choosecan be viewed online.19

ProcurementsThe Procurements module is the heart of Accelerator and the principal means by which agencies andproviders interact. It was designed to standardize solicitation and competition and save time for boththe City and providers. Within the Procurements module, the Procurement Roadmap serves as acustomizable dashboard from which providers can find, monitor, and respond to RFPs.20 Providers canmanipulate their view of RFPs by issuing agency, procurement status, release date, proposal deadline,contract date, and even provider status. The screenshot below shows the layout of the ProcurementRoadmap.

19 http://www.nyc.gov/html/hhsaccelerator/downloads/pdf/Services_Catalog.pdf20 Note that Accelerator is not the only means by which providers can learn about RFPs. Notices regarding whereto find human services RFPs are published in the City Record (and on each Agency’s site). In addition, the publicAccelerator website lists summaries of all planned or released RFPs. Thus, providers do not need to have anAccelerator account to be aware of RFPs, although they do need to have an account and be prequalified in order torespond to them.

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Source: HHS Accelerator

FinancialsThe Financials module enables ongoing financial tracking and management once a contract is executed.Designed to reduce accounting errors, facilitate communication regarding budgets and amendments,and streamline payment, it is a critical tool in the contract management process. As of April 2015, sixCity agencies were actively using this module: Department of Homeless Services, Human ResourcesAdministration, Administration for Children’s Services, Department of Small Business Services,Department of Probation, and Mayor’s Office of Criminal Justice. Three HHS agencies (Department forthe Aging, Department of Youth and Community Development, and Department of Health and MentalHygiene) were not using the Financials module.

AlertsAnother important feature of Accelerator is the Alerts functionality. This feature notifies users via emailwhen relevant solicitations are released. Notifications are based on the services that a provider isprequalified for in its Service Application. Another feature that users find helpful is notifications whencredentialing documents that have been uploaded to the system expire.

Accelerator UsageAs of April 2015, twelve City agencies had issued RFPs through the system. Those agencies are:

1. Administration for Children’s Services (ACS)2. Department for the Aging (DFTA)3. Department of Consumer Affairs (DCA)

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4. Department of Education (DOE)5. Department of Health and Mental Hygiene (DOHMH)6. Department of Homeless Services (DHS)7. Department of Probation (DOP)8. Department of Small Business Services (SBS)9. Department of Youth and Community Development (DYCD)10. Housing and Preservation Department (HPD)11. Human Resources Administration (HRA)12. Mayor’s Office of the Criminal Justice (MOCJ)

All other agencies have users as well. Nearly 3,000 providers had Accelerator accounts, more than 70RFPs had been issued through the system, and more than 800 awards had been made.

HHS Accelerator Statisticsas of April 2015

City agencies on board 12Providers with accounts 2,971RFPs issued 72Awards made 860

Source: HHS Accelerator

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Methodology of this Report

The aim of this report is to assess the initial impact of the Accelerator system on the procurement andcontracting process in the New York City Health and Human Services (HHS) sector so that progress andchallenges to date may inform next steps for further improvement. To that end, from December 2014through April 2015, HSC administered a Web-based survey to 41 human services organizations regardingtheir experiences prior to the introduction of Accelerator and with Accelerator in place. In addition, weconducted interviews with representatives from twelve of our member organizations to gain a deeperunderstanding of some of the issues they are facing and how Accelerator has affected theirprocurement and contracting experience. We promised all participants anonymity in order toencourage candor.

Participant SelectionThe organizations selected for interviews vary in budget size, number of employees, number of Citycontracts held, services provided, and constituents served. Our goal was to canvas as diverse a group ofproviders as possible. Nearly all of the survey respondents held a City contract at the time of the survey,and all of the interviewees held at least one City contract. Representatives were selected based on theirknowledge of the procurement process before and with Accelerator. Where possible, interviews wereconducted with the individuals directly responsible for handling proposals and/or managing contracts.

Survey and Interview QuestionsThe survey and interview questions were designed to elicit both quantitative information and candidobservations about the procurement process. Both open-ended questions and directed questions wereused to ensure that key points were addressed while giving participants the flexibility to elaborate ontheir experiences. Given the novelty of Accelerator, the majority of the questions address procurementunder the old system, with a few questions eliciting information about procurement throughAccelerator to enable comparison. The survey questions are included in this report as Appendix 1. Thequestions were grouped as follows:

Questions regarding the responding organization (size, budget, funding configuration, etc.) Questions about the prequalification process Questions regarding identification of RFPs Questions regarding the proposal production process

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The Impact of HHS Accelerator

Prior to the launch of Accelerator, there was consensus among HHS providers that the City’sprocurement systems did not meet the growing need for timely identification and engagement ofqualified, cost-effective service providers. This need was underscored by catastrophic events such asthe September 11 attack on the World Trade Center and Hurricane Sandy. HHS providers played apivotal role in the response to these emergencies, and yet they were subjected to cumbersomeprocesses that took time and resources away from service delivery. The old processes were marked byinefficiency, redundancy, and delays, all of which cost the City, providers, and taxpayers.

The main issues cited were:

Duplication of effort Inconsistency within and across agencies Disjointed notification of opportunities Voluminous RFPs and burdensome documentation requirements

The table below shows common problems with the pre-Accelerator process.

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Interview and survey participants described the pre-Accelerator process as “extremely paper-driven,”“incredibly inefficient,” “administratively intensive,” “redundant,” and even “horrendous.” Theydescribed Accelerator, on the other hand, as a more “efficient,” “streamlined,” and “much easier”system that alleviates some of the stress associated with responding to RFPs. Although Accelerator waslaunched just over a year ago, providers have already noticed improvements in the procurementprocess: 77 percent believe that it has made the procurement process more efficient. They describe thetechnical support as “outstanding.” The table below shows the descriptors used by participants todescribe the process before and with Accelerator.

Pre-Accelerator Process Accelerator ProcessPaper-driven

InefficientIntensiveDisjointed

BurdensomeLengthy

RedundantClunkyPainful

StressfulHorrendous

StreamlinedEfficient

EasierStraightforward

Well put togetherQuickerConciseLogical

OrganizedUser-friendly

Wonderful

Duplication CurtailedAn overarching problem with the pre-Accelerator City procurement process was duplication of effort.Duplication may result from multiple requests for the same document by the same agency (in somecases due to the original submission being lost), or by different agencies (as a result of lack ofinteragency coordination). It can also mean the production of multiple copies of a voluminous proposalpackage. In any case, duplication costs providers valuable time and money, which are ultimately paidfor by taxpayers. Every minute spent completing and submitting the same form more than once is aminute wasted.

The vast majority of survey respondents (80 percent) identified duplication of forms as a problem beforethe implementation of HHS Accelerator, with 50 percent rating it “a serious problem” and twelvepercent rating it “a very serious problem.” In response to the open-ended question, “What was thesingle most time-consuming and/or frustrating aspect of the pre-Accelerator SOLICITATION/PROPOSALprocess?”, 57 percent of respondents invoked duplication. Furthermore, several interviewees expressedfrustration with the repetitive requirements for the same information by different agencies. Oneinterviewee recounted her frustration in submitting the same document to the same agency “over andover,” while others lamented the lack of coordination among agencies to reduce requests for identicalinformation.

The majority of survey respondents and interviewees indicated that Accelerator has reduced theamount of duplication involved in the solicitation process. For example, 79 percent indicated that

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Accelerator had alleviated the most time-consuming and/or frustrating aspect of the oldsolicitation/proposal process (which, for most respondents, was duplication). As one intervieweeexplained, by reducing duplication, Accelerator allows his organization to devote more time to thesubstance of its proposals. It is not surprising, then, that 70 percent of survey respondents said thatreduced the overall amount of time that their organization spends responding to RFPs, and 77 percentindicated that Accelerator has reduced their administrative burdens thanks to the Document Vault.Several individuals expressed a need for broader use of the Document Vault, noting that not all Cityagencies (or departments within them) are using it.

Inconsistency ReducedAnother result of each agency having its own procurement process was the lack of a uniform systemacross HHS agencies. Many providers contract with multiple agencies, and although most Cityprocurement is subject to the rules promulgated by the Procurement Policy Board, each agency has itsown way of conducting the process. This is a corollary of duplication; providers are often required tosubmit the same information in different formats depending on the soliciting agency. While each agencyhas different service needs, information needs are generally the same across agencies. For example, allagencies need information about an organization’s past experience in a given service area.

Still, most survey respondents identified inconsistency among—and even within—agencies as aproblem. For 66 percent of respondents, inconsistency among agencies was a problem, whileinconsistency within agencies was a problem for 57 percent of respondents. Most respondents (60percent) also noted inconsistencies within individual RFPs. Two interviewees referenced a “specialform” required by one agency in particular. One interviewee even mentioned inconsistency within oneagency, with questions regarding the same contract eliciting different answers depending on whichagency staff member was reviewing it. Providers have noticed increased consistency within and amongRFPs since the implementation of Accelerator.

Notification of Opportunities StreamlinedPublication of RFPs is critical to the City’s ability to engage the most qualified providers. It is alsoessential to providers’ livelihood. If providers cannot find relevant opportunities in time to respond—orif they spend too much time searching—their survival is jeopardized. Before Accelerator, each agencypublished its solicitations through the media of its choosing. This resulted in providers subscribing tomultiple mailing lists and notification services, both electronic and postal.

Nearly half (49 percent) of the organizations surveyed indicated that they had difficulty findingopportunities before the launch of Accelerator, though they did not consider this to be as serious aproblem as duplication of effort. Prior to the implementation of Accelerator, providers learned of RFPsin what one interviewee described as a “totally ad hoc” manner. Sources included agency websites,mail, agency email lists, other organizations’ email lists, private RFP services, contacts within agencies,word of mouth, and prior RFPs. Agency email lists were the most popular means of notification, reliedon by 91 percent of survey respondents.

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Two interviewees mentioned that they missed some opportunities prior to the launch of Accelerator,whereas now they are notified of more opportunities. Since its launch, Accelerator has surpassedagency email to become the most relied upon source of notification about RFPs, with 90 percent ofsurvey respondents indicating that they now learn about opportunities through the system. Aninterviewee from a small provider noted that the RFP notifications have been especially helpful in lettingher know the full range of services that her organization is eligible for, leading her to think aboutexpanding its services. While many organizations continue to use other sources as well, 93 percent ofsurvey respondents indicated that Accelerator has made identification of RFPs easier.

Voluminous RFPs and Burdensome Documentation Requirements MitigatedFor many organizations, the length and density of RFPs, along with sheer volume of documentationrequired in the procurement are a significant burden. For 21 percent of survey respondents, readinglengthy RFPs was “a serious problem” prior to the release of Accelerator, while 23 percent identifiedgathering documentation as “a serious problem.” From lengthy narrative requirements to requests fordetailed organizational and financial documents, substantial staff time goes into gathering andpreparing a complete proposal. The graphic below, taken from the Accelerator concept paper,illustrates the volume of paper associated with the old process.

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Source: Office of the Deputy Mayor for Health and Human Services.http://www.nyc.gov/html/hhsaccelerator/html/about/about.shtml

While only 21 percent of survey respondents identified as “a serious problem,” 64 percent said thatRFPs are shorter now that Accelerator is in place. Interviewees explained that the principal value in theDocument Vault is having frequently requested documents in one centralized repository that isaccessible to multiple agencies. Corporate documents, in particular, can be difficult to gather undertime pressure—especially when the staff responsible for them are off-site and the proposal writer isfocusing on the content of a proposal. In fact, six survey respondents identified document sharingthrough the Document Vault as the single most helpful feature of HHS Accelerator. Several intervieweespraised the Document Vault as a significant time saver and stress reducer.

Requests for Original Documents MinimizedThe City’s requirement of original documents has been a significant procurement hurdle for providers.Most survey respondents (71 percent) indicated that this requirement is a problem, with 24 percentcharacterizing it as “a serious problem” and 24 percent finding it “a very serious problem.” Theprocurement rules authorize the use of electronic documents and electronic signatures in theprocurement process. Section 1-04(b) provides: “To the extent permissible under applicable law andthese Rules, agencies may store the contents of agency contract files electronically, and may use andmay allow vendors to use, electronic documents and signatures in the course of procurements.”21 Thus,in most cases, the PPB does not require original documents or signatures. Agencies continued to

21 In defining the term “in ink,” Section 1-01(e) provides: “Wherever these Rules provide that an action be taken"in ink," this requirement may be satisfied, if provided for in the solicitation, through the use of electronicsignatures.”

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require them, however, causing substantial inconvenience for providers. One interviewee described aharrowing pre-Accelerator experience in which the printer at his organization’s headquarters brokedown before a looming deadline. He went to another site in search of a functioning printer, only to finda technical problem with that one as well. Ultimately, he ended up at a print shop, constrained by thecapabilities of the print shop staff and equipment. Interviewees described the paper-driven process as“environmentally unfriendly,” “antiquated,” and “not a good use of resources.”

Accelerator has significantly reduced the paper burden for providers. Ten out of twelve intervieweesexpressed relief that Accelerator reduced the amount of paper required in the procurement process.Interviewees described the document upload process as “smooth” and stated that it “reduced stressand anxiety,” in contrast to the former system. Uploading files eliminates the need for printing,shipping, courier service, and hand delivery. Unfortunately, providers indicated that some agenciescontinue to require original documents in certain circumstances.

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Building on Success: Possible System Improvements

The response to Accelerator has, overall, been extremely positive. As laid out above, survey andinterview participants generally believe that Accelerator is a marked improvement over the formerprocurement process. Several participants did raise the following suggestions, however, for making thesystem even more efficient and user-friendly.

Enhance the Document VaultWhile most study participants greatly appreciate the convenience of the Document Vault, someexpressed a desire for better organization of documents so that they are easier to find. They suggestedthat the system allow for creation of subfolders or labeling of documents so that they may easily beidentified with specific proposals or types of information. Their concern is that as they respond to moreand more RFPs over time, it will become difficult to locate specific files. In addition, some participantsrequested an easier mechanism for removing documents that contain outdated information.Organizations are subject to many changes, including relocation and board and staff turnover. It isimportant that they be able to update their uploaded documents easily.

Increase File Size LimitsSome participants suggested that the system file size limit (currently 12 MB) be increased toaccommodate the types of files that are often uploaded. Proposal narratives in particular can be longdocuments containing graphics, tables, and formatting, all of which contribute to larger file sizes. Thecurrent limit has presented a problem for several users, who had to compress their files or divide theminto multiple documents.

Enhance Learning OpportunitiesThe Accelerator team provided numerous in-person trainings upon the launch of the system andcontinues to deliver face-to-face trainings frequently. In addition, webinars are available at all times onthe Accelerator website. Nonetheless, several participants expressed interest in attending furthertrainings to learn how to make better use of the system. Now that providers are comfortable with thesystem, HSC will partner with the Accelerator team to explore the best approaches to enhance learningexperience. Some participants also suggested that government agencies should be required toparticipate in training sessions so that they understand how to access uploaded information and processinvoices through the system.

Streamline RFP NotificationsAs explained above, Accelerator informs pre-qualified providers of new RFPs as they are released in thesystem through automatically generated emails. These notifications are based on the service areasselected by each organization. Several participants indicated that the volume of RFP notifications is toohigh, however, and that not all of the notifications that they receive are relevant. For example, a seniorcare center that provides some adult education services received the Universal Pre-kindergarten RFPnotice. Additionally, some participants stated that emails alerts are being sent to too many of theircolleagues. One interviewee, for example, said that when an uploaded document is about to expire,notifications go to the CEO of his organization and the chair of his board, creating anxiety and confusion.

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This in turn creates more work for him because he must explain that these notices are routine andautomatic. The Accelerator team is currently working on refining the notifications and alerts and hasalready implemented changes to permissions and notification for active users based on feedback fromproviders. Alerts and notifications now target only procurement or financials users, unless dualpermissions are in place. The team will explore further refinement of updates.

Enforce and Expand Use RequirementsAlthough providers are generally very satisfied with Accelerator, several participants expresseddisappointment and frustration with agencies that either do not use the system or use parts of it whilecircumventing others. According to some participants, several agencies continue to require originaldocuments and hard copies in lieu of (or in addition to) electronic submissions. Some agencies continueto superimpose their own form and formatting requirements on the procurement process, leading tothe inconsistencies mentioned above. These practices defeat one of the key purposes of the system andmake the procurement process more complicated. The use requirement should be expanded to all Cityagencies that contract for human services, and these agencies must refrain from creating additionalrequirements that are already satisfied by Accelerator.

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Conclusion

Overall, study participants viewed Accelerator as a dramatic turnaround from the historically low-tech,high-stress procurement process. In addition, many praised the prompt and “outstanding” customersupport provided by the Accelerator team. Most notably, our study shows an increased level ofsatisfaction with respect to the administrative aspects of procurement. As many participants pointedout, they still have to do the hard work of writing the proposal narrative, but Accelerator gives themmore time to do so. The improvements suggested in this report, when compared to the old process andto other procurement systems, are minor. Accelerator is already a model of efficient procurement, andit will be even more powerful when all of the City’s human services contracting agencies fully commit tousing it. The City, under Deputy Mayor for Health and Human Services Lilliam Barrios-Paoli and Directorof the Mayor's Office of Operations Mindy Tarlow, and the Accelerator team continue to be strongpartners in the effort to better the system and to expand the streamlining to other areas ofprocurement.

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Appendix 1

Below are the responses to selected survey questions. For the complete survey results, please see theReports page of the HSC website at http://www.humanservicescouncil.org/reports.php.

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Q18: Are all of the NYC human services agencies with which you contract using Accelerator?

Q19: Are any of the agencies you contract with imposing their own additionalrequirements on the proposal process? If so, please give examples.

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Q23: Has Accelerator reduced any administrative burdens related to the procurementand contracting process?

Q24: Has Accelerator alleviated the most time-consuming and/or frustrating aspect of theold solicitation/proposal process?

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Q25: Has Accelerator reduced the overall amount of time that your organization spendsresponding to RFPs?

Q27: Are RFPs easier to understand with Accelerator in place?

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Q31: Is it easier to identify and monitor relevant RFPs with Accelerator in place?

Q34: Overall, how has Accelerator affected the efficiency of the NYC solicitation/RFPprocess? Please choose one answer and use the comment box to list the changes (e.g.,easier identification of solicitations, reduction in paperwork, reduction in productiontime, reduction in duplication).